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Q: Brand extension ( No Answer,   13 Comments )
Question  
Subject: Brand extension
Category: Business and Money > Advertising and Marketing
Asked by: lindstrom-ga
List Price: $10.00
Posted: 02 Jan 2004 17:01 PST
Expires: 01 Feb 2004 17:01 PST
Question ID: 292535
I'm looking for two answers related to brand extensions:
1. Any interesting statistics indicating the growth of brand extensions and trends
2. Very interesting in-depth cases on brand extension - preferably
less traditional cases - however this is not a must.

Good luck,

martin
Answer  
There is no answer at this time.

Comments  
Subject: Re: Brand extension
From: jackburton-ga on 02 Jan 2004 18:10 PST
 
Hi Martin!
    
................................................
"Wireless brand extension is very complicated and very new. There are
only a handful of people working in this field, but our estimates are
that well over 2000 wireless brand extension projects could go online
in the next 5 years. WirelessDeveloper will be working diligently to
get our developers in front of these brandholders to secure these
deals.
	  	
The most celebrated wireless brand extension deal in the market is the
Who Wants to be a Millionaire game, licensed from Celador in the UK
and developed/promoted by Codetoys/Motorola.
  
There have been other deals, like a Britney Spears Crossroads movie
promotion and other Hollywood-driven tests. The pattern we are looking
for is always the same: use one media to drive another (use the
wireless apps, ringtones, graphics, trivia to drive ticket sales to
the movie and other promotional items)"
http://www.wirelessdeveloper.com/businessmodel/brand.htm
................................................
    
   
Some Case Studies:
  
Pampers and Huggies brands are being extended beyond nappies into all
aspects of baby care
http://www.tutor2u.net/business/marketing/casestudy_%20products_nappies.asp
  
Minute Maid Corporate Website - Successfully Creating a Brand Extension Online
http://www.sharpe-partners.com/pdf/sp_casestudy_mnm.pdf
  
"Virgin: Brand Extension or Brand Dilution?"
http://www.ecch.cranfield.ac.uk/scripts/colis/cgirecrd.exe?rn=503-109-1
(you'll need to register to view the whole case study)
   
"Olmeca Tortillas" & "Olmeca Tequila"
http://www.caterpillarconsultancy.co.uk/nprodlnch_cs.htm
  
Air Force recruits next generation of civilian leaders using Experience solution
http://www.experience.com/employers/resources/case_studies/airforce_case.php
  
?xtreme xtension?
"the fruity flavorits range was initially developed for children by
leveraging off the much loved characters of winnie the pooh and toy
story. to capture a teenage market, creative vision developed a brand
extension strategy featuring dragon ball z® characters. the brand was
?z-powered? into the fearsome fruity flavorits xtreme."
http://www.creativevision.com.au/html/packaging/Zpower.html
  
How DrinkTank Services developed a new category for a fruit and
vegetable juice manufacture.
http://www.lakesidebrands.com/case_details.asp?CaseID=5
  
Betty Croker 
http://www.shealink.com/cs_generalmills_betty.html
  
"Dove"
"Dove is an outstanding case study in brand extension. For decades it
was seen as little more than a cleansing product. But in the mid-80s
Dove launched its moisturising body-wash that, backed by positive
clinical studies and a communications campaign featuring consumer
testimonials, saw sales take off. The brand has been extending its
product range ever since."
http://www.unilever.com/brands/hpc/dove.asp?ComponentID=9234&SourcePageID=40
................................................
  
  
Hope this is useful to you!
Subject: Re: Brand extension
From: boquinha-ga on 02 Jan 2004 18:41 PST
 
Hi Martin!

I found this explanation with 2 examples:

"Brand extension refers to the use of a successful brand name to
launch a new or modified product in a same broad market.

A successful brand helps a company enter new product categories more easily.

For example, Fairy (owned by Unilever) was extended from a washing up
liquid brand to become a washing powder brand too.

The Lucozade brand has undergone a very successful brand extension
from children?s health drink to an energy drink and sports drink."

Here's the website: http://www.tutor2u.net/business/marketing/brands_extension_stretching.asp

Sincerely,
Boquinha-ga
Subject: Re: Brand extension
From: boquinha-ga on 02 Jan 2004 18:42 PST
 
Oops, forgot to add my search strategy:

Interestingly enough, my search words for the above comment were
"brand extension." ;)
Subject: Re: Brand extension
From: journalist-ga on 02 Jan 2004 20:13 PST
 
Greetings Martin:

"GE, Martha Stewart and Sunkist are just a few examples of the
companies who have discovered that brand extension licensing can
provide powerful marketing benefits and generate significant royalty
revenues. Each of these companies has generated over $1billion in
annual licensed product sales."
From http://www.goldmarks.net/how_it_work.html

*********

"Brand Equity Extension Examples - There are countless examples of
brands that have been effectively leveraged into new categories. Take
Arm & Hammer. From its long brand heritage in baking soda, significant
other Arm & Hammer businesses have emerged ? from toothpaste, to air
freshener to laundry detergent. Each product builds upon the equities
of the parent brand ? clean, fresh, good value ? while strengthening
overall brand equity. Here are other examples:

BRAND                  EXTENDED TO:
IBM Hardware           IBM Consulting Group
Disney Theme Parks     Disney Cable, Cruise Lines
eBay Online Auction    eBay Power Sellers Tools
Victoria?s Secret      Victoria?s Secret Cosmetics

Of course, brands can be stretched too far, risking brand equity
erosion, as in the case of Levi?s shoes or Clorox laundry detergent."

From http://www.equibrandconsulting.com/datafiles/equity.pdf

*********

"In the US, Anheuser-Busch created the Eagle brand for its honey roast
peanuts as part of a strategic platform for launching other products.
The Eagle banner was easily extendible to a variety of different snack
foods. (The Eagle is also a prominent part of Anheuser's Busch's
corporate heritage appearing on the corporate crest)." [Eagle Brand
Snacks...I never realized who the parent company was until now!]

"Aunt Jemima is famous in America for its association with pancakes.
Recently, the company began promoting a broader association by moving
from a product category, pancakes, to a usage situation, breakfast.
This association comes naturally to American consumers (as breakfast
is prime time for eating pancakes) and has enabled Aunt Jemima to
extend to various breakfast lines."

From http://www.allaboutbranding.com/index.lasso?article=91

*********

When Brand Extension Becomes Brand Abuse.
Brandweek, Oct 26, 1998, by Scott Davis

"Kraft's Jell-O Cheesecake Snacks may be the ultimate success story in
brand-family extension. It all started with plain, traditional Jell-O.
From there, Kraft introduced Jello in a cup to take advantage of the
convenience trend. Jell-O then expanded to pudding and pudding in a
cup. Finally, leveraging the entire portable Jell-O snack category,
Kraft introduced cheesecake snacks in a cup, sub-extending its own
Philadelphia Cream Cheese in the process."
FROM http://www.findarticles.com/cf_dls/m0BDW/1998_Oct_26/53170118/p1/article.jhtml

"The last ad I saw this past weekend was for Mercedes C230 priced at
$30,000. I had thought that Cadillac's Cimarron introduction several
years ago (a low-priced Cadillac) would have set the automotive
industry straight to one basic truism of brand management: One brand
for one type of consumer and price point. If you want to expand,
develop new brands. Honda recognized that to get to higher price
points beyond the Accord and Altima, they needed to develop Acura.
Same with Toyota and Lexus and Nissan and Infiniti...Other recent
examples of brand abuse include Ajax and SOS glass cleaners (won't
that hurt my glass?) and Pepsi Clear (tell me why clear is good
again?)."
From http://www.findarticles.com/cf_dls/m0BDW/1998_Oct_26/53170118/p2/article.jhtml?term=

[Both these links are the same article, different pages.]

*********

"Choice Hotels International launched a brand extension for its
Clarion product that it believes will help attract unique hotels that
can garner an average daily rate of at least $90."
From http://www.findarticles.com/cf_dls/m3072/8_218/102390310/p1/article.jhtml

*********

"Mountain Dew Code Red, Bud Ice, X-treme Jell-O, Snickers Ice Cream,
and Tropicana smoothies: all are examples of extending a brand. In
some cases, this is a case of pseudo-variety; in others it is
cross,-branding between two product segments...The article sites the
brand-extension winners, like the Kraft/Nabisco brands Oreo Double
Stuff, Mini Oreos, and Chips Ahoy Cremewiches, but also the losers,
like Ooey Gooey Warm 'N Chewy Chips Ahoy!, a microwaveable cookie. The
cost of that failure amounted to $17 million, showing that even brand
extensions can be risky."
From http://www.oligopolywatch.com/2003/12/23.html

*********

I believe the article titled "Deep? and 'Surface' Cues: Brand
Extension Evaluations by Children and Adults" By Shi Zhangsanjay Sood
will be of interest to you.  It contains quite a bit of information.
See http://www.anderson.ucla.edu/faculty/shi.zhang/pdf_files/deep_and_surface.pdf

Also see the paper "A taxonomy of brand linkages: the
brand-relationship-interaction (BRI) matrix" at
http://bss2.bham.ac.uk/business/papers/taxonomy.htm

*********

"Strong brands have also shown their true value in their ability for
extension - one of the best examples of this is Virgin, whose business
interests extend across many different categories, such as transport
and travel, banking and investments, cosmetics, health clubs and FMCG
products, to name but a few. And Virgin is not alone, as there are
many other examples of brand extension, such as with Caterpillar, Bic
and Dunhill."
From http://www.mediatoolbox.co.za/pebble.asp?relid=3038&p=40

*********

"Whether to do a brand extension is difficult to know. Nabisco chose
to do a whole new brand when they did Snackwells as opposed to linking
it to Oreo or Ritz crackers. It worked."
From http://food.oregonstate.edu/prodev/pr_brand.html

*********

"Brand extension has seen Cosmopolitan launching a variety of
spin-offs, such as Hair and Brides.  Also, badging consumer goods,
such as yoghurt and cars"
From http://www.magforum.com/1999.htm

*********

"The traditional core of brand extension activity has been licensing
and merchandising support for media brands or individual TV
programmes. At BBC Worldwide, for example, there is a compelling
financial logic in taking pre-school shows like Teletubbies and
Tweenies into toys, books, videos and apparel. For Channel 4, CD
spin-offs from drama series Queer As Folk are good examples of how to
open new routes to the consumer's wallet (see panel opposite)."
From http://www.mediaweek.co.uk/ThisWeek.Features.View.aspx?ContentID=75

*********

"Convergent" magazines -- print spinoffs of electronic media or
cyberspace, including ESPN The Magazine and Martha Stewart's
highfalutin home-and-garden journal -- are expected to do well in the
next century. They offer fickle consumers a chance to interface
reading with content on TV, radio and the Internet. Know as "brand
extension" or "complementary programming" the practice is a survival
tactic for hard-copy products in an electronic world. Magazines, says
Husni, "are about convenience."
From "Have Niche, Will Publish" at
http://www.findarticles.com/cf_dls/m1571/26_15/55241342/p1/article.jhtml

[Yahoo has a magazine, too, as does Nintendo and many other others.]

*********

"Procter & Gamble
Tide Brand Extension

Extension of a Flagship Brand: Tide Racing 2002

Background
In an effort to leverage Tide?s association with NASCAR, Tide?s
packaging and promotion materials have traditionally evoked the
imagery and excitement of NASCAR, taking on a racing-oriented
appearance. Landor?s challenge was to maximize the NASCAR
association..."
From http://www.landor.com/index.cfm?fuseaction=cPortfolio.getCase&caseid=584

*********

"Visa Platinum/Asia Pacific
Brand Extension

New Card Design to Communicate Exclusivity

Background
Landor was asked to develop a series of designs based on a black and
silver color combination, which had scored well in an earlier research
phase. The designs needed to reflect Visa Platinum?s brand platform of
rarity and exclusivity."

From http://www.landor.com/index.cfm?fuseaction=cPortfolio.getCase&caseid=672

*********

"CBS has also learned the value of brand extension from NBC's "Law &
Order" franchise, said John Rash, a buyer for the Chicago ad agency
Campbell Mithun."
From http://www.kimdelaney.org/Kim_Delaney_News.html

NOTE: In this vein, there are countless examples.  See
http://en.wikipedia.org/wiki/List_of_television_spin-offs for a
comprehensive list beginning with:

From All in the Family to
**The Jeffersons 
**Checking In 
**Archie Bunker's Place 
**Maude 
**Good Times 
**Gloria 
**704 Hauser 

Also, actors in brand extension:
My Favorite Husband (radio) progressed to I Love Lucy 
to The Lucy-Desi Comedy Hour
to The Lucy Show 
to Here's Lucy
and The X-Files spun off The Lone Gunmen.

The same with cinema attractions:

Alien ----> Aliens ----> 
Terminator
Die Hard
Jason
Freddy
ad naseum

See http://www.amazon.co.uk/exec/obidos/tg/listmania/list-browse/-/27OA41B5YPFCZ/t/202-3622484-7266237
for a short list.  See
http://www.rateitall.com/showlist.aspx?listid=697 for a longer list
(by movie, not group.)

*********

I hope I haven't overwhelmed your reading time with these examples. 
Your questions are so interesting to research that I became quite
obsessed with this one!

Best regards, 
journalist-ga




SEARCH STRATEGY:

"brand extension" examples
"brand extension" ~research OR ~study
"brand extension" spin offs
"brand extension" spinoffs
"television spin-offs"
"television spin offs"
"television spinoffs"
"movie sequels" list
"movie sequels" all
Subject: Re: Brand extension
From: bobbie7-ga on 02 Jan 2004 20:43 PST
 
Hi Martin!


FTD Floral Company

?Floral company FTD plans to extend its brand into home decor,
gardening and gifts under the FTD Collections umbrella.?

?FTD Lawn and Garden will include gardening gloves, tools,
wheelbarrows, flower pots and seeds. FTD Home, covering home decor and
improvement, will range from wallpaper to paints and fabrics to throw
rugs. FTD Occasions will feature gift products that can be
thematically grouped and will include flatware, vases and chocolates.
The new lines will have broad distribution to mass merchants and
specialty retailers and will be supported with significant media
spending. FTD, Downers Grove, III., spent $13.1 million in 2000, per
CMR.?
Brandweek, May 7, 2001,
http://www.findarticles.com/cf_0/m0BDW/19_42/74521258/p1/article.jhtml


Brand extensions heat up as vendors get creative.

Lego:
?Lego has probably taken this theme further than others by introducing
its brightly colored construction bricks into the conventional apparel
and media families. But it has also ventured into three vastly
different fronts in recent years, with the creation and expansion of
its Legoland theme park program (opening soon in Carlsbad, Calif.),
its Mindstorms robotics division and now with its Playseat Vehicle
Activity Center, created in partnership with Johnson Controls.?

Discount Store News: March 8, 1999
http://www.findarticles.com/cf_0/m3092/5_38/54121693/p1/article.jhtml



The case of National Geographic: 

"We are the most successful example of magazine brand extension," said
Loreen Ong, president of the National Geographic Channel, which is a
joint venture between the magazine and Fox Cable Networks. "It really
goes back to what the National Geographic brand happens to be. It's
about exploration, science and adventure. It's about spectacular
imagery and great storytelling."

Yahoo News
http://au.news.yahoo.com/031210/11/mvgf.html


Brand Extensions
 
?It seems that everywhere we look these days we see brand extensions.
Jim Beam?s name is now on barbecue sauce, Dannon is selling Dannon
water. The Sony name is on everything from Playstations to Walkmans to
digital phones, DVD players, notebook computers to even record labels.
The list is endless- Jello Pudding Pops; Skippy Peanut Butter Bars,
Ralph Lauren sheets. Bic even once tried to put its name on perfume.?

Marketingprofs.com
http://www.marketingprofs.com/preview_dp.asp?file=/Tutorials/brandextension.asp



Statistics:

?The average innovative non-food brand extension with at least one new
category benefit delivered a 66% higher year one sales return.?

?over the most recent six reports, non-food Pacesetters providing at
least one "innovative" new benefit represented 26% of new brand
extensions. The majority ? 74% of the total 502 successful new brand
extensions ? were judged to be close copies of lead brands within
their categories, lacking new benefits versus consumers? category
expectations.

While "cloning" the category leader is usually safer and easier, the
continual squeeze for space risks being "me-too"ed off the shelf.

Innovation truly pays out. New competitively superior line extensions
over the 1997-2002 period reaped higher year one returns. The average
innovative non-food brand extension delivered a 66% year one sales
bonus compared to the average cloned extension.?

Information Resources, Inc.
http://www.infores.com/public/timesandtrends/tt_factoid44.htm

Pie Charts
http://www.infores.com/public/timesandtrends/images/tt_factoid44.jpg

Download PDF 
http://www.infores.com/public/timesandtrends/tt_issue13.pdf


Astounding failure rates

?According to a 1997 US study by Ernst and Young, there is a 67%
failure rate among truly new products (meaning products that actually
create a new category). New brands entering an existing category
experience a 50% failure rate and perhaps most surprising, they found
an 84% failure rate among brand extensions. The reason for this high
failure rate among brand extensions? Ernst and Young cited a
fundamental lack of competitive differentiation. The proliferation of
undifferentiated brand extensions is symptomatic of a discipline that
is in desperate need of some prescriptive principles regarding brand
architecture.?

?According to Eileen Roche in the March, 1999 edition of Harvard
Business Review, 90% of all new consumer packaged goods introduced
each year are line extensions. When you factor in the escalating costs
of new brand launches it is not surprising to see so many line
extensions. However, there may be a false economy in this thinking. A
study by Research International in London showed that line extensions
rarely add more than 10% to sales ? while according to Deloitte and
Touche, most fail completely.?
Fallon Brand Consulting
http://www.fallonbrandconsulting.com/article03.shtml


Eighty percent of successful new products are brand extensions

?CPG execs understand the impact of having products that cross several
categories at retail through brand-extension licensing (think Oreo ice
cream). Eighty percent of successful new products are brand
extensions, says Kirk Martensen, president and founder of
Chicago-based licensing consultancy Goldmarks.?

?It certainly is a more economical way to go when you are bringing out
a new product with an existing brand,? Riotto says. ?You already have
consumer awareness and trust.?

Promo Magazine: Apr 1, 2003 
http://www.promomagazine.com/ar/marketing_branding_exclusivity/
 

75% new products are brand extensions

?Brand Extension Branding: Use one of its existing brand names as part
of a brand for an improved or new product, usually in the same product
category.?
University of Delaware
http://www.udel.edu/alex/chapt12.html


Search criteria:
Brand Extension OR extensions +marketing  


I hope you find my findings useful.

Best regards,
Bobbie7
Subject: Re: Brand extension
From: bobbie7-ga on 02 Jan 2004 20:51 PST
 
Martin;


Brand trends for 2003

The founders of Idea Engineers, Mandy de Waal and Janice Spark, look
at brand trends for the coming year and beyond.

Brand extensions will drop off, while marketers will realize the value
of old-fashioned service.

?In a frenetic market, marketers will learn that less is more and that
the road to increasing market share is paved with good, old-fashioned
service. In recent years brands have increasingly engaged in
extensions to increase market share. The coming years will show that
there is power in a narrower focus as brands return to the basics and
companies learn that growth is often achieved through the simplest of
things ? brilliant service.?

Idea Engineers: Press Release
http://www.biz-community.com/PressOffice/PressRelease.aspx?i=209&ai=1373


Best regards,
Bobbie7
Subject: Re: Brand extension
From: bobbie7-ga on 02 Jan 2004 21:12 PST
 
Martin,

Bic is another example of Brand Extension.

?For example, Bic? is a strong brand name with years of experience in
marketing low-cost disposable plastic products such as the Bic? pen.
Thus, Bic is positioned well to introduce products that capitalize on
these same basic strengths ? products such as disposable razors and
cigarette lighters.?
Brand Leveraging: August 2002
http://www.extension.iastate.edu/agdm/wholefarm/html/c5-30.html

Here?s an interesting document about Gillette and Bic. 
http://cursos.itam.mx/bruce/Merca%201/Cases/Case%20-%20Gillette.doc

Bobbie7
Subject: Re: Brand extension
From: pinkfreud-ga on 02 Jan 2004 21:28 PST
 
The Indian Motorcycle brand has been resurrected and extended to
apparel and food service:

"Imagine trying to revive a brand that has been extinct longer than
DeSoto, Hudson or Packard.
 
That's the challenge Frank O'Connell took on two years ago when he
became CEO of Indian Motorcycle...

Refocusing to leverage Indian's classic brand, including expanding
into products beyond motorcycling, O'Connell earlier this year assumed
the role of chairman... O'Connell is trying hard to establish the
Indian marque as representative of a total lifestyle -- not just a
single product. Brand experts point out that the potential for growth
is great in Indian's market, not only for motorcycles, but for
accessory lines as well. For example, Harley-Davidson Inc., which also
makes apparel, had sales of $3.4 billion last year.
 
The company is embracing the classic styling that distinguishes the
brand as well as marketing a high-end line of clothing. Also, a pair
of restaurants operate under the Indian Café name.
 
'The apparel may have a life of its own apart from the motorcycle,'
says Tim White, managing director of the Boston-based Audax Group, the
lead investor in Indian Motorcycle."

http://www.industryweek.com/CurrentArticles/asp/articles.asp?ArticleId=1335
Subject: Re: Brand extension
From: pinkfreud-ga on 02 Jan 2004 21:40 PST
 
Francis Ford Coppola's "Niebaum-Coppola" brand of wines has been
extended to include pasta, sauce, candles, even pens:

"In 1975, Francis Ford Coppola, the five-time Oscar-winning
director-writer and producer of such epic films as The Godfather
trilogy, and his wife Eleanor, purchased part of the historic Napa
Valley estate founded more than a century before by Gustave Niebaum,
noted for its legendary Cabernet Sauvignon vineyards. In 1978, the
Coppolas produced the first vintage of Rubicon, with a unique black
cherry cola taste. The '79 is now fetching $200 a bottle -- if you can
find one. The '94 was sensational and the just-released '95 is said to
be its equal. In 1995, the Coppolas purchased the remainder of the
estate, restored the Inglenook chateau to its historic dimensions, and
replanted vineyards on the same rootstock used by the estate's
founder.
 
Recently, Coppola extended the brand to include a multiplicity of
ventures, including a new line of mammarella pastas made from antique
molds, and organic sauces, linens, pottery, candles, writing tools and
pasta bowls."

http://www.novusvinum.com/interviews/coppola.html

Yikes, look at all the Niebaum-Coppola goodies, many of which have
little to do with wine:

http://info.product-finder.net/niebaum/
Subject: Re: Brand extension
From: journalist-ga on 02 Jan 2004 22:05 PST
 
P.S.  It's true: I can actually spell "ad nauseum"  ;)
Subject: Re: Brand extension
From: lindstrom-ga on 05 Jan 2004 23:49 PST
 
Hi jackburton-ga,
Thanks for your contribution. I've used a couple of ideas from your
work - so I've given you a small reward.

Thanks for your help.

All the best,

Martin
Subject: Re: Brand extension
From: lindstrom-ga on 05 Jan 2004 23:52 PST
 
Hi boquinha-ga ,
Thanks for your contribution. Unfortantly the article didn't cover the
type of info. I was looking for as my search more was focused on
staticial data.
Sorry about that - but thanks for your help anyway.

All the best,

martin
Subject: Re: Brand extension
From: lindstrom-ga on 05 Jan 2004 23:57 PST
 
Hi pinkfreud-ga ,
Thanks for your contribution. Interesting stuff - the only problem was
that I couldn't find in-depth cases supporting this strategy :-(
Sorry about that - but thanks for your effort on this one.

All the best,

martin
PS: I've left a small payment for you due to your effort over the past weeks.

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